If you disagree with the IRS on how much you owe in taxes, one of your options (but not always the best) is litigation. You may litigate your tax dispute with the IRS by bringing suit in the United States Tax Court. U.S. Tax Court is a prepayment forum. In other words, you can only litigate your tax case in the U.S. Tax Court if you have not already paid your taxes. If you have already paid your taxes and want to bring a refund suit, U.S. Tax Court is not the proper forum.
Section 6212 of the Internal Revenue Code (Tax Code) authorizes the IRS to send a “Notice of Deficiency” to the taxpayer if the IRS determines that there is a tax underpayment. Usually, the taxpayer first tries to resolve any tax disputes with the IRS through the IRS Appeals Office. For example, taxpayer has the option of asking for a Collection Due Process (CDP) Hearing in order to settle the tax dispute within the IRS. A large number of tax controversy cases are settled during these administrative hearings. If the taxpayer and the Appeals Office disagree on the amount of the tax liability, taxpayer may petition the U.S. Tax Court. Under Section 6213 of the Tax Code, the deadline for bringing such a suit is 90 days after the statutory Notice of Deficiency (or the 90 Day Letter) was issued. The deadline is extended to 150 days if the Notice of Deficiency was sent to an address outside the United States.
If you need assistance disputing your tax liability or if you need representation before the U.S. Tax Court, contact Kamyar Mehdiyoun, tax litigation attorney in Rockville, Maryland. We are a taxation law firm specializing in tax controversy and tax litigation and have experience representing taxpayers before the U.S. Tax Court.